594 research outputs found
A perspective on multinational enterprise’s national identity dilemma
This conceptual paper identifies gaps and contributes to the literature on ‘identity’ dilemmas faced by multinational enterprises operating in a globalised world. Various characteristics and business strategies of multinational enterprises are delineated and analysed through the lens of social identity theory and international business concepts such as market and institutional logic. Our analysis, based on multiple cases, and derived from a variety of industries and countries, associates the identity dilemma to informed business strategy. Our findings suggest that while multinational enterprises face identity dilemmas that they sometimes use to their advantage, it also poses several challenges. Through our conceptualisation, we derive five distinct propositions to shape future research directions
Digitalized service multinationals and international business theory
Banalieva and Dhanaraj argue that digital service multinationals (DSMNCs) possess a new category of firm-specific advantage (FSA), the network advantage, and that, contrary to extant theory, they use networks as a mode of governance. I review the business models used by DSMNCs, compare them to non-digital ones, and explore what we can learn about them from extant IB theory. I conclude that network advantages are not a new category of FSAs, that networks are not a mode of governance, and that their use by DSMNCs is well explained by extant theory
The geographically variegated connections of the Jakarta metropolitan area as produced by manufacturing firms
Connectivity in urban networks is often deemed to be an important feature of economically vibrant cities. Under conditions of contemporary globalization, the importance and geographies of these connections are increasingly variegated. Accordingly, various attempts have been made to analyse the external relations of cities and metropolitan regions, often through the lens of multilocational firms. Our purpose in this paper is to address the to‐date limited empirical knowledge about whether firms originating from different regions (i.e., firms with different headquarter [HQ] locations) create different patterns of inter‐urban relations. Drawing on the interlocking network model and using the Jakarta metropolitan area (JMA) as a case study, this paper explores how manufacturing firms with HQs either inside (further differentiating between the JMA and other cities) or outside (further differentiating between East Asian and non‐East Asian countries) Indonesia produce different patterns of external relations. Our findings indicate that each category of firms generates unique configurations of interurban relations for the JMA at the global and national scales. We argue that these variegated networks patterns not only reflect different locational strategies of firms, but also Indonesia's evolving policy orientations which have complex relations with evolving patterns of economic globalization
How do MNC R&D laboratory roles affect employee international assignments?
Research and development (R&D) employees are important human resources for multinational corporations (MNCs) as they are the driving force behind the advancement of innovative ideas and products. International assignments of these employees can be a unique way to upgrade their expertise; allowing them to effectively recombine their unique human resources to progress existing knowledge and advance new ones. This study aims to investigate the effect of the roles of R&D laboratories in which these employees work on the international assignments they undertake. We categorise R&D laboratory roles into those of the support laboratory, the locally integrated laboratory and the internationally interdependent laboratory. Based on the theory of resource recombinations, we hypothesise that R&D employees in support laboratories are not likely to assume international assignments, whereas those in locally integrated and internationally interdependent laboratories are likely to assume international assignments. The empirical evidence, which draws from research conducted on 559 professionals in 66 MNC subsidiaries based in Greece, provides support to our hypotheses. The resource recombinations theory that extends the resource based view can effectively illuminate the international assignment field. Also, research may provide more emphasis on the close work context of R&D scientists rather than analyse their demographic characteristics, the latter being the focus of scholarly practice hitherto
What lies between market and hierarchy? Insights from internalization theory and global value chain theory
In this paper, we suggest that internalization theory might be extended by incorporating complementary insights from GVC theory. More specifically, we argue that internalization theory can explain why lead firms might wish to externalize selected activities, but that it is largely silent on the mechanisms by which those lead firms might exercise control over the resultant externalized relationships with their GVC partners. We advance an explanation linking the choice of control mechanism to two factors: power asymmetries between the lead firms and their GVC partners, and the degree of codifiability of the information to be exchanged in the relationship
The economic geography of the meso-global spaces: integrating multinationals and clusters at the local-global level
This is an author's accepted manuscript of an article published in:
“European Planning Studies"; Volume 21, Issue 7, 2013; copyright Taylor & Francis; available online at: http://dx.doi.org/10.1080/09654313.2013.733853[EN] The local global phenomenon literature is fragmented between the fields of
international business and economic geography (EG). In the case of the latter, the literature,
produced within the global production networks (GPNs) and global value chain frameworks, does
not address the central role of firms, especially multinationals which co-locate and connect
territories along GPNs. This paper develops a cross-field conceptual integration in order to
enrich the EG perspective, using qualitative research methodology to test the framework. The
results have important implications for scholars and policymakers.We are very thankful to the “Ministry of Economics” funding ECO2010:17318 and “Generalitat Valenciana” for its support in visiting the London School of Economics and Political Science (BEST 2011 grants)Hervás Oliver, JL.; Boix Domenech, R. (2012). The economic geography of the meso-global spaces: integrating multinationals and clusters at the local-global level. European Planning Studies. 21(7):1064-1080. https://doi.org/10.1080/09654313.2013.733853S1064108021
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Organizational innovation in the multinational enterprise: internalization theory and business history
This article engages in a methodological experiment by using historical evidence to challenge a common misperception about internalization theory. The theory has often been criticized for maintaining that it assumes a hierarchically organized MNE based on knowledge flowing from the home country. This is not an accurate description of how global firms operate in recent decades, but this article shows it has never been true historically. Using longitudinal data on individual firms from the nineteenth century onwards, it reveals evidence of how entrepreneurs and firms with multinational activity faced with market imperfections changed the design of their headquarters and their organizational structures
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